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Redevelopment is a process created to assist city and county governments eliminate blight from a designated area and achieve the desired development, reconstruction, and rehabilitation of residential, commercial, and industrial uses. Redevelopment agencies possess unique tools to directly influence the private sector, reduce investment risk, and create or boost market confidence.
The Covina Redevelopment Agency was established pursuant to State Code by the City Council of the City of Covina on November 3, 1969, by Ordinance No. 1059. With this action, the City embarked on a comprehensive effort to eliminate blighting and adverse conditions within the City.
The focus of the City’s revitalization efforts has been channeled through the adoption and implementation of its redevelopment plans. The Agency’s first redevelopment project area, Project Area No. 1, was adopted on July 15, 1974. The Agency’s second redevelopment project area, Project Area No. 2, was adopted on September 19, 1983, and amended on July 13, 1987, to add territory, including the downtown area. Both of the above-mentioned redevelopment project areas are collectively referred to as the “Project Areas”.
Project Area No. 1 consists of 10 noncontiguous subareas scattered throughout the City, encompassing approximately 500 acres. Project Area No. 2 consists of five noncontiguous subareas scattered throughout the City, including a sixth area added by the 1987 amendment; Project Area No. 2 encompasses approximately 99 acres.
Some of the tools available to redevelopment agencies include:
Use of tax increment financing to fund public improvements and use of gap financing to provide financial assistance to qualifying developers for qualifying projects. Authority to acquire real property, and, if necessary, use of eminent domain. Relocation assistance and replacement housing. Mitigation of environmental liabilities to property owners and developers through the Polanco Act (CRL Sections 33459 through 33459.8).
Although these tools can jumpstart the revitalization process, by law, redevelopment is limited to areas that are in a state of decline and are physically and economically blighted. To initiate redevelopment, the agency must satisfy certain requirements. These requirements are as follows:
Establishment of a project area(s) in areas that are physically and economically blighted. Establishment of debt as a prerequisite to the collection and expenditure of tax increment. Set aside 20 percent of tax increment revenue to increase, improve, and preserve the supply of housing for very low, low, and moderate income persons and families. At least 15 percent of all new and substantially rehabilitated dwelling units in project areas must be affordable to, and occupied by, persons or families of very low, low, and moderate income.
Satisfying these requirements, redevelopment agencies can use their tools to catalyze the revitalization of urban areas. Once redevelopment efforts establish momentum in the market, the private sector can then dictate its own course, thereby benefitting residents, business-owners, and visitors.
Role of Redevelopment
In 1945, the State of California enacted the California Community Redevelopment Law (“CRL”) to combat the deterioration of property and its effects on the tax base. Through the Redevelopment Act, cities and counties were given authorization to establish redevelopment agencies that would have the legal authority to take measures to combat urban decay, or blight. In 1952, California voters adopted Article XVI, Section 16, allowing tax increment financing to be used by the agencies for the redevelopment of blighted communities. The goal of redevelopment to create safe and economically vibrant communities has remained steadfast since 1945.
Blight
The CRL emphasizes redevelopment’s role in eliminating blighting conditions in communities and takes great lengths to define blight. As defined by the CRL, blight constitutes physical and economic liabilities that affect the health, safety, and general welfare of a community. CRL Section 33030 describes a blighted area as being predominantly urbanized and substantially affected by the physical and economic properties of blight to such an extent that the community cannot reasonably be revived without redevelopment. The CRL describes the physical and economic conditions that cause blight as follows:
Physical Conditions (CRL Section 33031(a)) Buildings with serious code violations, dilapidation, or deterioration such that it is unsafe or unhealthy for persons to live or work. Conditions that prevent or substantially hinder the viable use or capacity of buildings or lots. Adjacent or nearby incompatible uses that prevent development. Existence of subdivided lots that are in multiple ownership and whose physical development has been impaired by their irregular shapes and inadequate sizes.
Economic Conditions (CRL Section 33031(b)) Depreciated or stagnant property values. Impaired property values due to hazardous wastes. Abnormally high business vacancies, abnormally low lease rates, or an abnormally high number of abandoned buildings. A serious lack of commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks. Serious residential overcrowding. An excess of bars, liquor stores, or adult-oriented businesses that have led to problems of public safety and welfare. A high crime rate that constitutes a threat to the public safety and welfare.
In accordance with the CRL, the existence of blight has been established in both of the Agency’s Project Areas requiring the use of redevelopment tools though the projects and programs established in the Agency's Implementation Plan.
Covina Redevelopment Agency Documents
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